Chapter 3 Flashcards
What is the role of the state? (5).
(E&sd.SM.I&s.P&cs.Ss&e(L).)
- Economic and social development.
- Support international and national markets by reducing transaction costs.
- Infrastructures and services,
- Price and currency stability.
- Social stability and equity (legitimacy).
What are they competing for? (4).
EE.:
I.
I.
MS.
HC.:
H.
S.
M.:
Pm.
Lm.
Fs.
Ms.
IE.:
Bd.
Ic.
Enabling Environment:
- Institutions
- Infrastructure
-Macroeconomic stability
Human Capital:
- Health
- Skills
Markets:
- Product market
- Labor market
- Financial system
- Market size
Innovation Ecosystem:
- Business dynamism
- Innovation capability
What is global competitiveness?
(the ability for…to…)
(it involves a…of…that contribute to…(e.p.p.i.be.)).
The ability for a region or entity to compete effectively in the global marketplace. It involves a combination of factors that contribute to the economic performance, productivity, innovation, and overall business environment.
Why is competitiveness so crucial?
(attracts I / fosters EG / ensures SP).
It attracts investments, fosters economic growth, and ensures sustained prosperity.
Does globalization limit the state’s effectiveness?
No it doesn’t!
The state decides if it’s opening up to international trade, if it wants to eliminates capital control, and decides on the growing harmonization of standards and procedures.
Does states have a say in globalization?
Yes they do…to a certain extend!
In what sphere doesn’t states have a say in globalization? (3).
(C.D.LML.)
- Competition for FDI (e.g., tax credits and subsidies).
- Deregulation.
- Labor market liberalization.
In what sphere do states have a say in globalization? (3).
(D.C.S&L.)
- They decide on the degree of trade and financial openness.
- They affect competitiveness of MNEs.
- They provide stability and legitimacy through welfare benefits (ease the costs of globalization).
Who are the 2 institutions that can affect globalization?
- MNEs.
- International Institution (WTO).
